BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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35
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45
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75
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80
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None
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Detailed explanation-1: -Simply take the sales price minus the unit cost, and divide that number by the unit cost. Then, multiply by 100 to determine the markup percentage.
Detailed explanation-2: -Markup percentage is calculated by dividing the gross profit of a unit (its sales price minus its cost to make or purchase for resale) by the cost of that unit. If an item is priced at $12 but costs the company $8 to make, the markup percentage is 50%, calculated as (12 – 8) / 8.
Detailed explanation-3: -When the cost is $5.00 you add 0.30 × $5.00 = $1.50 to obtain a selling price of $5.00 + $1.50 = $6.50. This is what I would call a markup of 30%. 0.70 × (selling price) = $5.00.
Detailed explanation-4: -Multiply the original price by 0.2 to find the amount of a 20 percent markup, or multiply it by 1.2 to find the total price (including markup). If you have the final price (including markup) and want to know what the original price was, divide by 1.2.